Delay in directive cost taxpayer £288m

THE Secretary of the Department of Social Welfare, Mr Edward McCumiskey, yesterday declined to name the top five firms of solicitors…

THE Secretary of the Department of Social Welfare, Mr Edward McCumiskey, yesterday declined to name the top five firms of solicitors who gained from implementation of an EC directive on equality treatment. But Mr McCumiskey told the Committee of Public Accounts that the highest paid firm received £616,009.

Mr McCummiskey was giving evidence on the 1995 report of the Comptroller and Auditor General which showed that the failure of the Irish authorities to implement the directive cost the taxpayer £288 million. If the directive had been adopted on time, Mr McCumiskey estimated the cost would have been £20-£30 million.

Subsequent litigation had cost £2.5 million with a further £3.5 million provided in the estimates. Committee chairman Mr Denis Foley (FF) asked if the Department was taking measures to ensure that the legal profession was not enriching itself at the expense of the taxpayer. "We are doing everything possible," Mr McCumiskey replied.

Of the five firms which benefited, the highest received £616,000 and the lowest £114,000. Mr John Ellis (FF) asked Mr McCumiskey to name the firms. Mr McCumiskey replied that on legal advice he would not name the firms "at present". Mr Ellis said Mr McCumiskey's refusal to name the firms "defeats the purpose of this committee". Mr Des O'Malley (PD) questioned the authority of the Department to enter into confidentiality agreements when public money was involved. Mr McCumiskey repeated that his legal advice was that to name the solicitors would infringe a confidentiality agreement the Department had with them.

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Mr Eric Byrne (DL) agreed with his committee colleagues that the legal profession treated arms of the Government "as a sponge to be squeezed".

Mr Tommy Broughan (Lab) said ultimately the decision not to implement the directive was political and it was unfair to ask a public servant to account for it. A pattern was emerging, Mr Broughan added, of the taxpayer becoming liable for heavy and unpredictable financial costs. First there was the Beef Tribunal, Mr Broughan said. Now there was the equal treatment arrears, costing nearly £300 million.

"There are the costs associated with hepatitis C and we are hearing of soldiers with hearing problems making claims against the State." Could the State take out insurance, Mr Broughan asked the Comptroller and Auditor General, Mr John Purcell. It was hard to say Mr Purcell but in any event the premiums would be "astronomical".